Finally. Gasoline prices look like they'll begin declining (in some areas) and continue their descent (in others). The Great Lakes states may see some of the biggest declines after wholesale gasoline prices dropped off last week to their lowest since late June. In fact, some areas of the Great Lakes could see prices fall to the low-to-mid $3/gal range over the next week, which would be their lowest prices since June.

Over the next week, the national average may decline close to double digits per gallon, between 5-12c/gal if all goes smoothly (let's hope it does). As the peak season for gasoline consumption has passed, we're also seeing some speculative money exit, according to CFTC data. On the flip side, money was beginning to flow into heating oil and diesel, as those petroleum products see their peak demand season on the horizon.

Oil prices continue to bounce around near $90/bbl, and may continue to shed value this week as inventories remain much higher than last year. According to the most recent EIA data, oil inventories stand 8.5% higher than their year ago levels, at some 366.4 million barrels. This will be a driving factor in the days ahead.

Overall, gasoline prices across the U.S. remain very high for this time of year, and while California wholesale prices have fallen, retail prices have been very slow to follow. California prices have fallen a mere 7c/gal in the last week even as wholesale prices have remained much lower in the last few trading sessions. The downturn may quicken in the week ahead as wholesale prices have seemingly stabilized.